Why build a customer relationship management capability?

Authors:
Tim Coltman
Affiliations:
Centre for Business Services Science, University of Wollongong, NSW, Australia
Venue:
The Journal of Strategic Information Systems
Year:
2007

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Abstract

The market enthusiasm generated around investment in CRM technology is in stark contrast to the naysaying by many academic and business commentators. This raises an important research question concerning the extent to which companies should continue to invest in building a CRM capability. Drawing on field interviews and a survey of senior executives, the results reveal that a superior CRM capability can create positional advantage and subsequent improved performance. Further, it is shown that to be most successful, CRM programs should focus on latent or unarticulated customer needs that underpin a proactive market orientation.